Tighter Financial Regulation, Extraterritorial Application and Administrative Enforcement Risk
First written in FY2019-Q2. 5 of 15 entries say "Restated". Latest entry: FY2026-H1.
Nomura Holdings moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 3 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「In March 2025, the General Court upheld the European Commission’s decision but reduced the fines imposed on NIP and Nomura to approximately €125.6 million. In June 2025, NIP and Nomura appealed to the Court of Justice of the European Union.」
The General Court upheld the decision concerning the fine order relating to European government bond trading, reduced the fines to approximately €125.6 million, and the matter then proceeded to an appeal before the Court of Justice of the European Union. New litigation in the United Kingdom and other matters were also disclosed. - FY2025-H1MaterialisedAnnual report
「In October 2024, Nomura Securities Co., Ltd., a subsidiary of Nomura, was found to have engaged in conduct violating laws and regulations in connection with Japanese government bond futures transactions in March 2021. The Ministry of Finance suspended its special qualification under the Primary Dealer System for the JGB market from 15 October 2024 through 14 November 2024, and the Financial Services Agency issued an order to pay a surcharge.」
Financial regulatory and enforcement risk newly materialized in the form of the suspension of Nomura Securities’ special qualification concerning Japanese government bond futures trading and the Financial Services Agency’s order to pay a surcharge. The disclosure also noted that some customers might refrain from trading, potentially affecting revenue. - FY2024-Q3MaterialisedAnnual report
「In August 2023, NSI entered into a non-prosecution agreement with the DOJ under which it would pay a $35 million civil monetary penalty and approximately $0.8 million in restitution to affected customers, bringing the DOJ investigation to a close.」
The U.S. Department of Justice investigation concerning RMBS transactions actually concluded with a non-prosecution agreement under which NSI paid a $35 million civil monetary penalty and approximately $0.8 million in customer restitution. Appeals in the Taiwan litigation, the India litigation, and proceedings in Germany and Italy, among others, remain ongoing. - FY2024-Q1WorsenedAnnual report
「In August 2017, NIP was notified by the Cologne Public Prosecutor’s Office in Germany that it was investigating the involvement of former Nomura Group employees in tax evasion. …In April 2023, prosecutors searched Nomura Group’s Frankfurt office.」
In addition to the previous European Commission fine and CFTC proceedings, a search of the Frankfurt office was conducted in April 2023 as part of an investigation into tax evasion involving dividend transactions in German shares and other matters. - FY2023-Q3RestatedAnnual report
「In September 2022, Nomura agreed with the CFTC to comply with arrangements ordered by the CFTC and to pay a civil monetary penalty of $50 million.」
Nomura has continued to disclose agreements with the CFTC and SEC concerning unapproved communication platforms, each involving a $50 million civil monetary penalty. - FY2023-Q2MaterialisedAnnual report
「Nomura was also responding to an investigation by the CFTC into compliance with laws requiring the retention of business communications, in connection with communications relating to business conducted using communication platforms not approved by the company. In September 2022, Nomura agreed with the CFTC to comply with arrangements ordered by the CFTC and to pay a civil monetary penalty of $50 million.」
The CFTC investigation concerning unapproved communication platforms actually resulted in an agreement involving a $50 million civil monetary penalty. Nomura also disclosed an agreement between NSI and the SEC involving a $50 million civil monetary penalty. - FY2023-Q1WorsenedAnnual report
「Nomura is also responding to an investigation by the CFTC into compliance with laws requiring the retention of business communications, in connection with communications relating to business conducted using communication platforms not approved by the company. Nomura is currently negotiating a settlement with the CFTC that would involve the payment of a civil monetary penalty.」
In addition to the European Commission’s previous fine, the CFTC’s prosecution concerning interest rate swaps and the class actions, Nomura disclosed the CFTC and SEC investigations concerning unapproved communication platforms and settlement negotiations involving civil monetary penalties. - FY2022-Q3WorsenedAnnual report
「Nomura is responding to requests from the authorities concerning interest rate swap transactions related to bond issuance. On 1 February 2021, the U.S. Commodity Futures Trading Commission initiated civil enforcement proceedings against one Nomura employee, alleging violations of the anti-fraud, price-manipulation and false-statements provisions of the U.S. Commodity Exchange Act in connection with interest rate swap transactions conducted in 2015.」
In addition to the European Commission’s fine order, the financial regulatory and enforcement risks disclosed include civil enforcement proceedings by the U.S. Commodity Futures Trading Commission and class actions in the United States and Canada. - FY2022-Q2RestatedAnnual report
「On 20 May 2021, the European Commission issued a decision against NIP, Nomura and several other banks, finding that they had engaged in conduct violating European competition law in connection with the issuance and trading of European government bonds in the primary and secondary markets. The European Commission found violations of European competition law through anti-competitive concerted practices and coordinated conduct in the European government bond market, and ordered NIP and Nomura to pay fines of approximately €129.6 million.」
Nomura has continued to disclose the European Commission’s fine order concerning European government bond trading and the appeal filed in August 2021. - FY2022-Q1MaterialisedAnnual report
「On 20 May 2021, the European Commission issued a decision against NIP, Nomura and several other banks, finding that they had engaged in conduct violating European competition law in connection with the issuance and trading of European government bonds in the primary and secondary markets. The European Commission found violations of European competition law through anti-competitive concerted practices and coordinated conduct in the European government bond market, and ordered NIP and Nomura to pay fines of approximately €129.6 million.」
Financial regulatory and enforcement risk actually materialized in the form of the European Commission’s finding of violations of competition law concerning European government bond trading and its order to pay fines of approximately €129.6 million. NIP and Nomura filed appeals in August 2021. - FY2021-Q3RestatedAnnual report
「Changes to related regulations and supervisory frameworks in the broader financial system may accelerate fragmentation of financial markets, resulting in higher business costs and potentially affecting Nomura’s profitability.」
Nomura has continued to disclose the risk that changes to financial regulations and supervisory frameworks, extraterritorial application, and fragmentation of financial markets could affect business costs and profitability. - FY2020-Q2RestatedAnnual report
「Administrative action by the Financial Services Agency against Nomura and Nomura Securities」
Nomura has continued to disclose the business improvement order concerning information management, the loss of certain business opportunities, and the possibility of future reputational damage and loss of business opportunities. - FY2020-Q1MaterialisedAnnual report
「On 28 May 2019, the Financial Services Agency issued a business improvement order to Nomura and Nomura Securities concerning the management and control framework for information management, among other matters.」
Financial regulatory and enforcement risk actually materialized in the form of a business improvement order concerning information management and the loss of certain business opportunities. - FY2019-Q3RestatedAnnual report
「These regulations are intended broadly to promote the stability of the financial system, ensure the soundness of financial markets and financial institutions, and protect Nomura’s customers and third parties that do business with Nomura. They may restrict Nomura’s activities through capital requirements, customer protection regulations and market conduct rules, among others, and may affect Nomura’s earnings.」
Nomura continued to disclose the risk that changes in financial regulations, their extraterritorial application, and investigations and enforcement actions could restrict business activities and affect earnings, and recognized approximately ¥20 billion in costs related to the $480 million settlement with the U.S. Department of Justice. - FY2019-Q2First statedAnnual report
「These regulations are intended broadly to promote the stability of the financial system, ensure the soundness of financial markets and financial institutions, and protect Nomura’s customers and third parties that do business with Nomura. They may restrict Nomura’s activities through capital requirements, customer protection regulations and market conduct rules, among others, and may affect Nomura’s earnings.」
The increasing complexity and extraterritorial application of financial regulations, together with the rise in investigations and enforcement actions, were identified as risks that could restrict business activities and affect earnings. In an RMBS investigation by the U.S. Department of Justice, a settlement payment of $480 million was actually made.